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Will COVID-19 Result in a Refund on My Car Insurance?
May 2, 2020
Many companies are providing refunds and discounts.
Many auto insurance companies are providing some sort of relief to their policyholders.
What amount and how each auto insurance company will implement the relief will be determined on a company-by-company and state-by-state basis.
Here are some actions taken by insurance companies in New York State as of 4/19/20. I mention a specific date as responses by carriers have changed frequently just in the past week. Many of these actions are pending NYS DFS approval.
- Allstate (& Encompass): Customers will receive 15% of their monthly premium back in April and May. Premiums provided by credit to their bank account, credit card, or Allstate account.
- Erie Insurance: Returning 30% of 2-months worth of premiums for customers having an Erie Auto policy in force after April 1st. In addition, the company filed for an overall rate decrease of 5% in the states where they operate.
- GEICO: 15% credit upon renewal.
- Hanover: Returning 15% of April & May auto premiums. Customers who have paid in full will receive two refund checks.
- Hartford: Announced its COVID-19 Auto Payback Plan, which will provide customers a 15% refund on the April and May personal auto insurance premiums.
- Main Street America (National Grange): One-time full payment of $50 per vehicle. Checks will be mailed to the named insured on the policy.
- Mercury: Giveback of 15% of monthly premiums for April and May. Customers will receive the giveback in the manner their insurance premiums were paid.
- NYCM: 15% credit back from their April and May Premiums. Checks to be mailed to the address on their policy.
- Plymouth Rock: Pay it forward option. Anyone who wishes to donate their auto insurance premium credit to a non-profit that is providing relief for those hit hardest by COVID-19. Also, they will be offering a 25% premium credit on Liability and Personal Injury Protection Coverages.
- Progressive: A 20% credit of their April and May premiums.
- Safeco/ L iberty Mutual: 15% refund of two months of their annual auto.
- Selective: 15% off both personal and commercial auto policies.
- State Farm: Announced a dividend to their customers which will amount on average a 25% premium credit for April and May.
- Travelers: 15% credit on April and May premiums.
- Utica National: One-time payback equal to 15% of the monthly automobile premium for April and May.
- USAA: 20% premium credit for 2 months (April & May)
A 15% refund of April and May premiums seems to be the standard at this point. That amounts to approximately 5% of annual premiums.
In addition, policyholders are being offered flexibility on the timing of payments due at the current time. Call your agent or company representative if you have premiums due and face financial hardship. Ask what payment accommodations can be made. New York state has also mandated an extension of the period of time for cancellation of policies due to the non-payment of premiums.
Have questions about your specific carrier? We LOVE to help! Please feel welcome to call us at (607) 324-7500
This article may have been originally published at Quora.com.
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“Am I covered if I drive someone else’s car?” Or, “Am I covered if someone else drives mine?”
Many don’t realize that the insurance industry is one of the country's most regulated business segments, especially in New York State. The New York State Department of Financial Services (NYS DFS) wields significant control over the insurance business and has a stated goal of protecting consumers.
Most property insurance companies offer Actual Cash Value or Replacement Cost settlement options. Typically, insurance companies will require that you insure the property to the settlement value you choose. If you select Actual Cash Value, the amount you may be required to insure the property for will be less than the corresponding Replacement Value.
In that spirit, the Ryan Agency is sponsoring a Stearns BBQ Dinner pickup at our office on 57 Broadway Mall in Hornell on September 12th from 3:00 PM to 4:30 PM.
Today, an individual’s credit history can play a more significant role than any one of those traditional factors. Good Credit Scores lead to a Positive Insurance score. A good Insurance Score greatly influences what someone will pay to insure their vehicles.
Insurance companies offer various discounts for which their policyholders may qualify.
Great Eight number Six (6) suggests taking a look at removing Comprehensive and Collision on Older Vehicles.
By reducing the number of claims in your insurance history, you can significantly affect your rates in the future.
Sometimes, this concept meets with resistance from policyholders. The thought of paying more in the event of a claim is off-putting to some. Even if that means I pay more for my insurance.
OK. Admittedly, this strategy doesn't benefit everyone, but it can be very beneficial for those it does. You may have unique home or auto insurance needs that prevent you from bundling with the same company. Alternatively… you might have a better rate without the bundle discount by splitting up your insurance between multiple carriers.
